The following amounts are from Cooper Co.'s 2011 income statement:

What amount would Cooper show for income from continuing operations on a multiple-step format income statement?

Question

The following amounts are from Cooper Co.'s 2011 income statement:

What amount would Cooper show for income from continuing operations on a multiple-step format income statement?

Quizplus · Accepted Answer

Income from continuing operations is calculated by subtracting cost of goods sold, selling and administrative expenses, and other expenses from total revenues. Using the amounts provided in the income statement, income from continuing operations can be calculated as follows:
Total revenues - Cost of goods sold - Selling and administrative expenses - Other expenses = Income from continuing operations
($180,000 - $80,000 - $38,000 - $5,000) = $57,000. Therefore, the best answer is B.

The Following Amounts Are from Cooper Co